An Empirical Investigation of the Growth Cycle Theory of Small Firm Financing

Brian T. Gregory, Matthew W. Rutherford, Sharon Oswald and Lorraine Gardiner

Journal of Small Business Management, 2005, vol. 43, issue 4, 382-392

Abstract: This paper empirically tests the financial growth cycle model for small and medium‐sized enterprises (SMEs), which postulates that as firms become larger, older, and more informationally transparent, their financing options become more attractive. We add to the literature by providing one of the first empirical tests of the model using a large, cross‐sectional data set. Our results partially support the financial growth cycle model. Specifically, our results show larger firms, as measured by total number of employees, are more likely to use public equity funding or long‐term debt as opposed to insider funding.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1111/j.1540-627X.2005.00143.x (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:ujbmxx:v:43:y:2005:i:4:p:382-392

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/ujbm20

DOI: 10.1111/j.1540-627X.2005.00143.x

Access Statistics for this article

Journal of Small Business Management is currently edited by Eric Liguori

More articles in Journal of Small Business Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().